The Australian Dollar is consolidating near multi-week highs against the US Dollar on Thursday, trading around the 0.7050 level after peaking near 0.7091 in Wednesday’s session. The currency pair is holding steady following the release of US economic data that indicated easing inflationary pressures, which has kept the greenback under pressure and unable to mount a significant recovery.
The AUD/USD appears to be pausing after its recent rally, with traders digesting the implications of softer US inflation figures. The cooling price data has reinforced expectations that the Federal Reserve may have less room to maintain its aggressive monetary policy stance, which continues to weigh on Dollar strength. Market participants are now watching whether the Aussie can break through resistance at the 0.7091 level or if profit-taking will push the pair lower from current levels.
FXnCO Insight
Traders should monitor US inflation data releases closely and watch for a confirmed break above 0.7091 to signal continuation, or rejection at this level for potential short opportunities back toward 0.7050 support.
Source: FXStreet